Govt forms 2nd ETF Bharat-22, includes shares from six sectors
4 Aug 2017 5:54 PM GMT
The government on Friday said it has set up a new exchange-traded fund (ETF), Bharat-22, comprising 22 scrips including ONGC, IOC, SBI and Axis Bank.
This will be the second ETF from the government after it raised over Rs 8,509 crore from three tranches of CPSE ETF.
Bharat-22 will have a diversified portfolio of six sectors, including energy, FMCG, finance, basic material and industrial and utilities, Finance Minister Arun Jaitley told reporters here.
The 22 scrips include central public sector enterprises (CPSEs), state-owned banks and government's strategic holding in Axis Bank, ITC and L&T held through SUUTI (Specified Undertaking of Unit Trust of India).
"While selecting each of these sectors, we have kept in mind sectoral reforms which have had direct impact on the valuation of these shares... We believe that this ETF will be a fairly successful one," Jaitley said.
ETF functions like a mutual fund scheme and is bought by investors as units.
The oil and gas and coal and mine PSUs whose scrips figure in the new ETF are ONGC, IOC, BPCL, Coal India and Nalco. The other CPSEs which on the list are Bharat Electronics, Engineers India, NBCC, NTPC, NHPC, SJVNL, GAIL, PGCIL and NLC India.
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